Davos Is Losing - The SUM Report 1-22 | QPOL Issue #33
How the WEF Goons are losing the war for globalism.
I open this issue of QPOL with the above tweet because the crowds I run with who think they’re “tuned-in” are clearly missing the forest for the trees of what’s actually happening between the global elites. Believe it or not, they are losing. It’s their arrogant hubris and solipsism that gives them the fuel to continue their Malthusian agendas of a neo-feudalistic future where they’re on top and we’re safe and content in our pods with our bugs. The irony is that they can’t do it without carbon energy resources, which Russia will refuse to sell to the EU in order to win the war against the NATO-backed Ukrainazis. As the Fed keeps raising rates (regardless of what the MSM headlines might trick you into believing), the Davos piggy bank will run dry. This SUM report will review some events from the past week that show how and why these Davos devils are in fact, losing the war for global domination.
Here’s some comic relief just to prove my point…
Dimon’s Davos Higher For Longer Tour
Jaime Dimon has made it clear that we’re going higher for longer. Fed’s Bullard said the terminal rate is 7%, meaning that’s the highest the Fed is willing to raise the Fed Funds Rate. As Powell says, “until the job is done.” Anyone who’s trusting a Fed insider/”whisperer” over Powell or Jaime Dimon is in complete denial. You’ve been warned by both myself and Mr. Dimon that we’re definitely going over 5% FFR. Strap in, boys and girls.
The following tweet thread conversation may be what many might have thought happened at Davos since Jaime Dimon attended this year.
The following pic is a screen-shot since Chase’s tweets are protected (nice guy btw)…
To which I responded:
Again, many still think the Fed is on the side of the Malthusian globalists at Davos, but this couldn’t be further from the truth. If anything, Dimon went there to set things straight and tell Schwab how it is that they’re raising rates and bankrupting their commie green agenda Great Reset asses.
As I’ve also warned many times before, the media puppet masters are trying to pull the narrative and rhetoric strings in order to force Powell to do their bidding: pivot. They don’t call it “the War Street Journal” for nothing. Based on this headline, “Fed Sets Course for Milder Interest-Rate Rise in February”, this is plain evidence the Davos media masters are desperate the force into the market zeitgeist that the Fed will do what they’ve always done and come to the market’s rescue. Powell and Dimon aren’t the only ones admitting what the reality of monetary policy is. Even Brainard is coming clean in this investing dot com piece “Fed's Brainard backs higher for longer rates for 'some time' to quell inflation.” It’s imperative that we must be able to separate the signal from the noise. Don’t buy into the Davos disinformation campaigns. Remember that news is a narrative and distorting it is one of their final weapons because they are that desperate to not only win, but to survive.
The narrative in the news isn’t the only place denial is rampant. It’s also in the markets. Again, the markets are mis-priced. Especially for those trying to read the Eurodollar Futures Curve (which historically shows when the Fed is forcasted to pivot based on the inversion of the curve), they’re merely reading tea leaves at this point. Why? Because the Eurodollar Futures Curve is wrong. The market is in denial that the Fed will pivot. The reality is that Powell has broken the Fed Put and will most likely raise rates by 50 bips next FOMC. As I’ve mentioned countless times before, pivoting would undo all the work Powell has done to gain back the Fed’s credibility. And because of this credibility improvement and a nominal lowering of the CPI, it’s also why there won’t be a recession in 2023. We won’t get that until 2024 (which we’ll get into in the next section)…
Japan Goes YOLO/Leroy Jenkins For The Fed
Earlier in the week the fintwit macro bros were all hyped up about Japan’s monetary policy: how they’re able to cut rates, do YCC (yield curve control), and spend while everyone else is stuck with raising rates at the Fed’s behest. Many are curious why the country hasn’t collapsed. The reason behind this is that Japan/BOJ (Bank of Japan) historically and IS the Federal Reserve’s ultimate wing man. They can essentially experiment with their monetary policy at virtually no cost at the Fed’s bidding. The recent BOJ activity (I believe) is to attract capital away from Europe (Davos) and cause capital flight back into the US and Global South. As I’ve mentioned in previous issues of QPOL, there is a tacit coordination between the BRICS nations/Global South and the Fed to take out Davos economically.
Now to get into some of the “details”, if you will. To hear from an expert, I recommend giving this Twitter Space with Japanese monetary policy specialist Weston Nakamura, a listen. I was able to ask him direct questions about what I think is happening with Japan aligning with the Fed against the EU (which he basically agreed with).
Ok. Now for the quick run-down/brief of my Japan/Fed theory:
The yen is weak against the dollar so that makes the carry trade more attractive. AKA: you can get really cheap debt in yen and then leverage it and go play around in the markets. That’s what I believe the traders were all giddy about. I could be wrong though.
Japan is taking the fall for the Fed to strengthen the dollar against the euro because they’re at odds with the ECB. Japan is the Fed’s wing man and they’re working together to bankrupt Europe because they’re at war, a war for monetary independence from Davos.
Japan and the global South have been active in the US treasury market for better and for worse. Simply put, they loaded up and dumped them for dollars to prepare for war which is why we’ll see higher commodity inflation, which will only hurt the US here even more with cost-push inflation. This is why Luongo and others believe 2023 will mean higher inflation but because of the lag in monetary policy, there will not be an actual recession until 2024. Eventually though, global capital will be preserved by running back into safe-havens like US treasuries, gold, Bitcoin, and the DOW (American markets in general), because that’s where capital is treated best. Regardless, the coordination between nations working against Davos is just further proof that not everybody is on this Great Reset Train and signifies Davos and the WEF trolls are not as strong as they’d want you to believe.
Peak Clown World
We are at peak clown world. A weak economy is making big tech fire more people, and yet retarded retail sentiment makes #Bitcoin “number go up” (although I feel it’s a mix of that plus capital flight from outside the US). Regardless of my optimism towards Dimon, it’s moments like this we should all stop, laugh, and appreciate.
Clown world or not, this is hilarious. I think he’s trolling because it’s totally in his interest to bash Bitcoin while he preps the banking industry’s infrastructural to offer crypto products and accumulate as much of the world’s supreme form of collateral as possible in this still rather bear-ish market we find ourselves in.
The market is severely mis-priced and people are still in denial the Fed will pivot. The reality though is in the layoff numbers. Hat-Tip to Magoo PhD for the following stats…
Amazon - 18,000 laid off - jan 4th 2023
Google - 12,000 laid off - jan 20th 2023
Microsoft - 10,000 laid off - jan 18th 2023
Facebook - 11,000 laid off - nov 9th 2022
Salesforce - 8,000 laid off - jan 4th 2023
Here’s a nice little visual…
It’s important to realize that this truly IS peak clown wrold and peak Davos. I’d highly recommend taking a look at this white-pill of an article from Luongo on the matter. These people are losing and the Fed is doing out job for us. All we have to do is stay diligent and figure out how to survive this as best as possible and then some.
The reality is that as rates go higher for longer, a lot of fat is being shaved off from corporate America (especially middle management bureaucratic filler positions). As clownish as things can get, remember the importance of the incentives shared by the powers that be: who benefits from what policy and why and who does NOT benefit? What would those actors be willing to do to fight for survival? That’s exactly what we’re facing here. I went on a recent rant on all of this on Green Candle Investments’ space earlier in the week. I sum it all up in less than 5 minutes…
To end this issue of the SUM Report. I’ll sign off by sharing some sexy clown world lols. Have a great week everyone and remember: own your failure, because God knows our so-called leaders do not…
Clown World DGAF about my typos I guess…
It’s gotta be cold over there…
~ Phil Gibson
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I'm very new to this - can you explain what is meant by the markets being mispriced (e.g. what markets, and mispriced relative to what)? Thanks...